On-Line Broker Swab-Qtips Has a Beta of 1

question 76

Multiple Choice

On-line broker Swab-Qtips has a beta of 1.1,and its market return and risk-free rates are 15% and 5%,respectively.What is Swab's cost of equity?

• A) 18%
• B) 10%
• C) 25%
• D) 16%
• E) 26%

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Definitions:

Sharp Pain

A sudden, intense sensation of discomfort or distress.

Hypnotized

A state of heightened suggestibility and focused attention, often used in therapeutic settings to modify behavior or alleviate pain.

Pretenders

Individuals who simulate a condition or characteristic, often for personal gain or attention.

Hypnotized

Inducing a trance state in someone, during which they exhibit heightened focus, concentration, and suggestibility.